Client Success Story: $380,000 Federal Income Tax Resolved with a Refund Through Expert Tax Resolution Services
At Carlsen Partners, we specialize in uncovering overlooked financial details that can drastically impact a client’s tax liabilities. One of our most remarkable success stories involves a client who faced an overwhelming federal income tax liability of $380,000. Through diligent analysis and expert tax resolution strategies, not only was the entire liability eliminated, but the client also received a refund.
The Situation
Our client had entered into a significant financial arrangement by lending a substantial amount of money to their corporation. Unfortunately, due to business challenges, the corporation failed to repay the loan and eventually declared bankruptcy. At the time of filing the client’s tax returns, this critical piece of information—the non-repayment of the loan—was not taken into account.
As a result, the IRS assessed a tax liability of $380,000, not realizing that the client had suffered a substantial financial loss that qualified as a nonbusiness bad debt deduction.
Our Tax Resolution Approach
After thoroughly reviewing the client’s financial and tax documents, we identified the overlooked bad debt—the unpaid loan to the bankrupt corporation. Under the Internal Revenue Code, when a bona fide loan becomes wholly uncollectible and is not repaid, the loss may be treated as a short-term capital loss if it’s a nonbusiness bad debt.
We compiled comprehensive documentation, including:
We submitted a formal claim to the IRS, amending the client’s prior tax returns and clearly outlining the case for recognizing the bad debt deduction.
The Outcome
The IRS accepted our position. As a result:
This case highlights the importance of accurate tax representation and how seemingly minor oversights—like an unaccounted bad debt—can lead to enormous tax consequences if not properly addressed.
Need Help with Tax Issues?
If you’re facing significant tax debt or believe your tax returns may not reflect your full financial situation, you may have options. Our team of experienced tax professionals can help you:
Contact Carlsen Partners today to schedule a confidential consultation and explore how we can resolve your tax challenges just like we did for this client.
Client Success Story: $1.5 Million Federal Income Tax Refund
The Situation
When a successful business owner approached us for a second opinion on their past tax filings, they suspected that opportunities may have been missed. After a comprehensive review of their prior three years of returns, we confirmed their instincts were right—and the results were remarkable.
Our team conducted a meticulous examination of the client’s financial records and tax filings. Through this process, we identified several areas where deductions had been overlooked, income had been misclassified, and recent tax law changes had not been applied effectively.
We prepared amended returns for each of the past three years, ensuring every available credit and deduction was accurately applied. Once submitted, the results spoke for themselves: the client received combined federal and state tax refunds totaling approximately $1.5 million.
Beyond the financial recovery, our work gave the client peace of mind and confidence in their compliance going forward. We continue to work with them to optimize their tax strategy and ensure they never leave money on the table again.
Contact Carlsen Partners today to schedule a confidential consultation and explore how we can resolve your tax challenges just like we did for this client.